Authority: High Court of Punjab and Haryana at Chandigarh
Order Date: 19 October 2024
Case Overview
- Petitioner: Innovative Infracity Private Limited
- Respondents: Assistant Commissioner of Income Tax and others (Revenue Department)
- Nature of proceedings: Writ petition challenging notices issued under Section 148 of the Income Tax Act, 1961 and certain circulars/instructions issued by the Board.
- Background: The petitioner contended that the revenue notices dated 28‑02‑2023 and 30‑03‑2023, and the order dated 30‑03‑2023, were issued without conducting the faceless assessment mandated by Section 144B of the Act and therefore lacked jurisdiction. The petition also argued that circulars cannot override statutory provisions.
- The Court referred to earlier judgments: Jasjit Singh vs. Union of India (No.21509 of 2023, decided 29‑07‑2024) and Jatinder Singh Bhangu vs. Union of India (No.15745 of 2024, decided 19‑07‑2024), as well as a coordinate bench decision dated 19‑07‑2024, which held that circulars or instructions cannot make statutory provisions otiose or obsolete.
- Legal provisions considered: Sections 119, 120, and 144B (sub‑clauses 7 & 8) of the Income Tax Act, 1961; Section 148 for issuance of notices.
Final Outcome
- The Court held that the circulars/instructions issued by the Board must only supplement, not supplant, statutory provisions.
- Notices issued under Section 148 on 28‑02‑2023 and 30‑03‑2023, and the order dated 30‑03‑2023, were set aside for want of jurisdiction.
- All writ petitions filed by Innovative Infracity were allowed.
- The interim order previously passed merges with the present order.
- All pending applications related to the matter stand disposed of accordingly.
Topics: Income Tax, Judicial Precedent, Tax Administration